Page v. Comm'r of Soc. Sec.
Page v. Comm'r of Soc. Sec.
Opinion of the Court
Plaintiff Jennifer Page ("Plaintiff") brings this action under
Plaintiff contends that "significant factual and legal developments" have occurred since she filed the complaint. Plaintiff's Brief, 2, Docket # 20, Pg ID 852 (citing Lucia et al. v. SEC, --- U.S. ----,
*903STANDARD OF REVIEW
Motions to amend are governed by Fed.R.Civ.P. 15(a)(2), which provides that a court may "freely give leave [to amend a pleading] when justice so requires." This Rule reaffirms the principle that cases should be tried on their merits "rather than [on] the technicalities of pleadings." Moore v. City of Paducah ,
ANALYSIS
A. The Effect of Lucia on the Appointment of Defendant's ALJs
Plaintiff's motion for leave to amend her complaint is based on Lucia et al. v. SEC , --- U.S. ----,
B. The Present Motion
Plaintiff seeks to amend the original complaint to account for "significant factual and legal developments that have occurred" since filing suit on November 15, 2017. Plaintiff's Brief at 2 (citing Lucia, supra ; Jones Brothers v. Sec'y of Labor ,
In Jones Brothers , a company hired to perform road repairs disputed civil penalties imposed by the Mine Safety and Health Administration for failing to comply with the agency's safety requirements. Id. at 671-672. The plaintiff did not raise an Appointments Clause argument before the ALJ assigned to its case but later in arguing before the Commission (appeal review within the administrative process), the plaintiff pointed out in a footnote that "there is currently a split among the Circuit Courts of Appeal as to whether administrative law judges, who are not appointed by the President, may constitutionally decide cases brought before them." Id. at 673.
The Sixth Circuit found that the plaintiff forfeited the Appointments Clause argument at the administrative level by acknowledging but failing to "press" the issue of whether the appointment procedure for ALJs was constitutional as applied. Id. at 677. However, the Court excused the forfeiture, noting that the plaintiff was uncertain as to whether the Commission had authority to rule on its constitutional claim. Id. at 678 ("That is a reasonable statement from a petitioner who wishes to alert the Commission of a constitutional issue but is unsure...just what the Commission can do about it"). The Court found that the plaintiff's reasonable uncertainty, coupled with its acknowledgment (if not developed argument) of the constitutional issue at the administrative level provided grounds for excusing the forfeiture. Id. at 678 Citing Lucia , the Sixth Circuit vacated the Commission's decision and remanded the case to the administrative level, "[b]ecause the administrative law judge was an inferior officer of the United States, and because she was not appointed by the President, a court of law, or the head of a department, as the Constitution demands." Jones Brothers at 672,.
As in Jones Brothers , the current challenge pertains to the Defendant's appointment duties under the applicable statutes as applied. "Commissioner of Social Security is permitted to 'assign duties, and delegate, or authorize successive redelegations of, authority to act and to render decisions, to such officers and employees of the Administration as the Commissioner may find necessary.' " Davidson v. Commissioner of Social Security ,
The facts of this case do not warrant making an exception to the general rule that the failure to bring as-applied claims at the administrative level results in waiver. First, Plaintiff's argument that he was unaware of the constitutional inadequacy of the presiding ALJ while the case was at the administrative level is unavailing. Although the administrative process in Jones Brothers predates the current case, the Jones Brothers plaintiff noted a "circuit split" on the issue of the appointment of ALJs while its case was still at the administrative level. In contrast, current Plaintiff *905failed to raise, much less develop the Appointments Clause issue at the administrative level although the split in authority occurred long before the application for benefits was considered by the Appeals Council.
If a claimant or representative files a timely Appointments Clause challenge and timely requests Appeals Council review, the AC will consider the challenge in the context of the facts of the case (including, but not limited to, the date of the ALJ decision and the date the challenge was raised) in determining whether there is a basis to grant review. The AC will determine whether granting review is appropriate under 20 CFR 404.970 or 416.1470, or both, when considering both the decision on the merits and any potentially unresolved Appointments Clause issues. ¶ In those matters where a timely Appointments Clause challenge to an ALJ decision issued prior to July 16, 2018 is raised to the Appeals Council in a proper request for review, the AC will grant review and issue a decision or order remand, as appropriate.
Moreover, a regulation in effect long prior to the events in question states that claimants may receive an expedited appeals process to challenge a "provision in the law that you believe is unconstitutional."
*906For overlapping reasons, Plaintiff's claim that her ability to challenge the ALJ's appointment was due to "Defendant's continued concealment of facts" does not present grounds for remand. Plaintiff notes that the ALJ assigned to her claim was referred to as an administrative law judge in various notices related to the disability claim and that news media reports pertaining to Defendant's ALJs imply that they were lawfully appointed. Plaintiff's Brief at 2. However, she fails to identify to any affirmative misrepresentation made by Defendant or allege that any of the media references prior to the July, 2018 news release make claims related to the manner of the ALJs' appointment. Her claim that Defendant willfully concealed that its ALJs were not properly appointed does not warrant a remand.
As such, Plaintiff's motion to amend her complaint will be denied as futile.
CONCLUSION
Accordingly, Plaintiff's motion for leave to file an amended complaint [Docket # 20] is DENIED.
IT IS SO ORDERED.
Plaintiff and Defendant filed summary judgment motions on March 13, 2018 and June 7, 2018 respectively which have been referred for a Report and Recommendation pursuant to
Article II § 2 of the Constitution states in relevant part that "Congress may by Law vest the Appointment of such inferior Officers, as they think proper, in the President alone, in the Courts of Law, or in the Heads of Departments."
Defendant does not dispute that the ALJ presiding at her administrative hearing was not appointed in a manner consistent with Lucia.
The split in authority regarding the appointment of ALJs was acknowledged on December 27, 2016 in Bandimere v. Securities and Exchange Commission ,
https://secure.ssa.gov/apps10/reference.nsf/links/08062018021025PM. (Last
visited October 19, 2018).
Although the language of the statute appears to refer to facial challenges to a statute, regulation, or rule, it establishes, at a minimum, that the Appeals Council is able to consider constitutional challenges.
Reference
- Full Case Name
- Jennifer PAGE v. COMMISSIONER OF SOCIAL SECURITY
- Cited By
- 22 cases
- Status
- Published